ACC 241 Uses of Accounting Information II (1) Zach Walden & 12/03/21 3:59 PM | = Homework: HW #10 - Chapter 11 Question 10, E11-31A (si. Part 1 of 6 1 HW Score: 0%, 0 of 10 points O Points: 0 of 1 0 1 0 Save Earthem Ware is a manufacturer of large flower pots for urban settings. The company has these standards: (Click the icon to view the standards.) (Click the icon to view the actual results.) Read the requirements. Requirement 1. Compute the direct labor rate variance and the direct labor efficiency variance. (Enter the variances as positive numbers. Enter the currency amounts in the formulas to the nearest cent, then round the final variance amounts to the nearest whole dollar. Label the variance as favorable (F) or unfavorable (U). Abbreviations used: DL = Direct labor) Begin with the direct labor rate variance. First determine the formula for the rate variance, then compute the rate variance for direct labor. DL rate variance * x X - X Standard price and volume Actual results 9 pounds per pot at a cost of $3.00 per Direct materials (resin) pound Direct labor....... 5.0 hours at a cost of $18.00 per hour Standard variable manufacturing overhead rate .....S4.00 per direct labor hour Budgeted fixed manufacturing overhead ...... ... 545,500 Standard fixed MOH rate. ... $9.00 per direct labor hour (DLH) Earthern Ware allocated fixed manufacturing overhead to production based on standard direct labor hours. Last month, the company reported the following actual results for the production of 1,100 flower pots: Purchased 11,170 pounds at a cost of $3.10 per pound; Direct materials... used 10,670 pounds to produce 1.100 pots Worked 5.5 hours per flower pot (6,050 total DLH) at a Direct labor... cost of $17.00 per hour Actual variable manufacturing $4.80 per direct labor hour for total actual variable overhead ............. manufacturing overhead of S27,830 Actual fixed manufacturing overhead S45,300 Standard fixed manufacturing overhead allocated based on actual production $49,500 X Requirements 1. Compute the direct labor rate variance and the direct labor efficiency variance. 2. What is the total variance for direct labor? 3. Who is generally responsible for each variance? 4. Interpret the variances. Print Done Print Done Help me solve this Clear all Check